5% is New 4% in Era of Higher Yields, Says Guneet Dhingra

Watch on YouTube ↗  |  May 18, 2026 at 15:57  |  5:48  |  Bloomberg Markets
Speakers
Guneet Dhingra — Head of US Rates Strategy at BNP Paribas

Summary

Guneet Dhingra of BNP Paribas argues that 5% is the new floor for 30-year US Treasury yields, with further upside possible. He points to a strong economy reducing the chance of Fed rate cuts, a shift in foreign demand toward price-sensitive investors, and parallels to the 2023 break above 4%. He also notes that higher yields may act as an equity hedge.

  • 30-year US Treasury yield has surged above 5% and may go higher.
  • Foreign demand for US bonds is shifting from traditional buyers to more price-sensitive financial centers.
  • The strong US economy limits the Fed's ability to cut rates and could lead to hikes.
  • No technical anchor exists above 5%, similar to the 4%-to-5% move in 2023.
  • Higher bond yields could provide a hedge for equity gains.
  • The bond market remains vulnerable to further sell-offs.
Trade Ideas
Guneet Dhingra Head of US Rates Strategy at BNP Paribas 1:02
30-year yields headed well above 5%.
The 30-year US Treasury yield has broken above 5% and is likely to continue significantly higher, potentially toward 6%, driven by a strong economy that precludes Fed rate cuts (and could lead to hikes), a shift in foreign demand from price-insensitive buyers (e.g., Brazil, India, China) to more price-sensitive financial centers, and no technical anchor above 5% similar to the 2023 transition from 4% to 5%. The bond market remains vulnerable to further sell-offs.
US30Y HIGH
Guneet Dhingra Head of US Rates Strategy at BNP Paribas 1:02
30-year yields headed well above 5%.
The 30-year US Treasury yield has broken above 5% and is likely to continue significantly higher, potentially toward 6%, driven by a strong economy that precludes Fed rate cuts (and could lead to hikes), a shift in foreign demand from price-insensitive buyers (e.g., Brazil, India, China) to more price-sensitive financial centers, and no technical anchor above 5% similar to the 2023 transition from 4% to 5%. The bond market remains vulnerable to further sell-offs.
30-Year US Treasury Bond HIGH
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This Bloomberg Markets video, published May 18, 2026, features Guneet Dhingra discussing US30Y, 30-Year US Treasury Bond. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Guneet Dhingra  · Tickers: US30Y, 30-Year US Treasury Bond